KUALA LUMPUR (May 15): Liftech Group Bhd, which manufactures industrial lifting and handling equipment, has signed M&A Securities as the underwriter for its listing on the ACE Market.
Listing is targeted for June, Liftech said in a statement on Friday. Under the agreement, M&A Securities will underwrite initial public offering (IPO) shares set aside for the Malaysian public and eligible persons under the ‘pink form’ allocations.
The IPO will allow the company to raise funds for expansion, acquire machinery and equipment to boost production capacity, and strengthen working capital, said Liftech managing director Bernard Ng.
Based in Puchong, Selangor, Liftech mainly designs and builds cranes such as overhead cranes and gantry cranes as well as industrial lifts including goods hoists for clients such as steel foundry and construction firms. The company also provides related maintenance and repair services.
The company plans to expand its maintenance and repair business by acquiring new facilities in Bukit Minyak, Penang, and Kota Kinabalu, Sabah, according to its draft prospectus. The current facility in Penang is nearly fully occupied, limiting its ability to take on new orders for growth, Liftech noted.
The existing Sabah facility in Inanam, meanwhile, is a rented premise and the company is in the midst of acquiring a dedicated building in Kota Kinabalu for growth, Liftech said. Further, the company also intends to purchase new machinery and equipment for its factory in Taiping, Perak.
“The IPO will strengthen our capacity to expand operations, enhance service delivery, and capture new market opportunities,” said Ng.
Last year, the company made a net profit of RM6.6 million on revenue of RM57.66 million. About two-thirds of its revenue came from manufacturing while services contributed for about 19% and trading of components, accessories and other equipment accounted for about 16%.
Ng and executive director Eng Peng Hong are also cashing out part of their shares through an offer for sale under the IPO.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory is the corporate finance adviser.